Chapter 13 bankruptcy is also known as “reorganization bankruptcy” and involves the debtor utilizing a portion of income to repay creditors over a three- to five-year window contingent on how much debt is owed and how much income is earned. If your income is sporadic or not sufficient to cover your financial debt then the bankruptcy judge may not allow you to file under this chapter. In addition, if the amount you owe is exorbitantly high you may also be disqualified from seeking protection under chapter 13. A skilled Long Island bankruptcy attorney, like the ones at The McBreen & Kopko Law Firm, will assess your debts and income and let you know up front whether you are eligible for Chapter 13. There are some debts that you must repay in full if you file for Chapter 13 bankruptcy. These are called priority debts and some of them include:
* Salary to employees who work for you
* Some tax responsibilities
* Alimony
* Child support
Some other regular payments you are required to pay are car loans and mortgages and after doing that, whatever income remains will go towards paying off the other types of debt. Your repayment plan ends when you have paid off your debts entirely. The Long Island bankruptcy lawyers at The McBreen & Kopko Law Firm have extensive knowledge of New York bankruptcy laws and can provide the legal support you need when filing for bankruptcy. If you need help with business or personal bankruptcy in Long Island then contact McBreen & Kopko. A representative from our firm will contact you shortly.
